Moody's downgrades Greek banks

NEW YORK (CNNMoney) -- As if the European markets needed more bad news, Moody's Investors Service downgraded eight Greek banks on Friday.

Moody's downgraded the long-term deposits and senior debt ratings of the banks by two notches. The rating agency said that the "liquidity and funding positions of Greek banks are increasingly fragile" and referred to the bank industry as a "deteriorating operating environment."